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Impact investment dream team targets new inclusive economy

The Global Social Impact Investment Steering Group (GSG) convenes in Lisbon today. It is led by Sir Ronald Cohen and brings together representatives of 13 countries, the EU and governments to promote social impact investment across the world.

The GSG is the successor to the Social Impact Investment Taskforce unveiled in 2013 by David Cameron. In the UK, the GSG is supported by a National Advisory Board and a Practitioners' Council which comprise a 'dream team' of influential senior executives both connected to and working within impact investment, including former ministers Hazel Blears and Alan Milburn, and Nick Donohue, previously head of Big Society Capital.

The vision from the UK's point of view is "to build a sustainable and inclusive economy", according to Michele Giddens, founder and partner at Bridges Ventures and chair of the UK National Advisory Board. It also aims to see "that measurable impact is regularly embraced as a deliberate driver in investment and business decisions to create better outcomes for stakeholders and wider society."

Giddens was very clear about why that needs to happen. She said: “Impact investors are increasingly proving that capital can be a powerful force for social change.

“The UK currently faces stark challenges. Large sections of the population feel that the economic system does not work for them, crucial public services like health and education are under severe pressure and we face global environmental challenges.

“All of this highlights the need for a more inclusive, more sustainable approach to business. Impact investment can play a vital role in addressing these and many other challenges, by delivering better, more cost-effective outcomes for the most underserved members of society.”

Also led by Sir Ronald Cohen, the Social Impact Investment Taskforce aimed to catalyse the development of the social impact investment market. It brought together government officials and senior figures from the worlds of finance, business and philanthropy from across the G8 countries.

It was instrumental in sharing approaches in the areas of impact measurement, asset allocation, international development and impact investing and ‘mission alignment’ (corporate forms, governance and legal protection).

The taskforce oversaw the preparation of a report on the global social investment market by the Organisation for Economic Co-operation and Development (OECD) last year. That report identified a lack of communication about impact investing, with the market looking very different country to country.

Large sections of the population feel that the economic system does not work for them

As a result of that, the Global Impact Investment Steering Group includes more countries to share learning. The membership now consists of 14 members; the EU counts as one member, but others now include Brazil, Mexico and India.

“Every country that wants to apply to join needs to show that they have a real policy interest in expanding the impact investing sector in their country and they do that by having a national advisory board or a taskforce,” explained Giddens.

Other members of the UK National Advisory Board are connected to the impact investing sector but not rooted within it. They include former Labour health secretary Alan Milburn, who is now the chair of the Social Mobility and Child Poverty Commission, and former chief executive of Big Society Capital, Nick O’Donohue.

UK National Advisory Board for the GSG

Alan Milburn

Chair of Social Mobility and Child Poverty Commission

David Blood

Co-Founder of Generation Investment Management

Dawn Austwick

CEO Big Lottery Fund

Sir Harvey McGrath

Chair of Big Society Capital and Heart of the City

Hazel Blears

Chair, Social Investment Business

Helia Ebrahimi

Business Correspondent, Channel 4 News

Keith Smithson

Managing Director in Treasury at Barclays

Laurie Spengler

President of Enclude

Nick O'Donohoe

Senior Advisor on Blended Finance at Gates Foundation

Sacha Romanovitch

CEO of Grant Thornton

Saker Nusseibeh

CEO of Hermes Investment Management

Tim Farazmand

Non Executive Director of ClearlySo

Sir Tony Hawkhead

CEO of Action for Children

The UK's Practitioners' Council sits alongside the National Advisory Board. It consists of 12 people that work in impact investment, including Rodney Schwartz of ClearlySo, Cliff Prior of Big Society Capital and Alastair Davis, CEO of Social Investment Scotland.